For investors seeking momentum, S&P MidCap 400 Dividend Aristocrats ETF (REGL Quick QuoteREGL - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 26.6% from its 52-week low price of $35.51/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

REGL in Focus    

REGL focuses on mid-cap stocks which are currently members of the S&P MidCap 400 Index and have increased dividend payments each year for at least 15 years. REGL charges investors 40 basis points a year in fees and has top holdings in Albemarle Corp, CDK Global Inc and MDU Resources Group Inc (see all mid-cap ETFs here).

Why the Move?

Contrary to the wide-ranging believe, the tone of the latest Fed minutes turned hawkish, hinting at the possibility of a June rate hike. This is because the U.S. economy is taking root. While a certain level of risk-on sentiment will hang on in the marketplace to cash in on the growing economy, volatility will also flare up.

This makes mid-cap ETFs like REGL more intriguing as this spectrum bears the traits of both large and small caps. REGL has moderate international exposure and is thus relatively unscathed by the impending strength in the greenback. Focusing on stocks with consistent dividend payments also point to quality investing – a pre-requisite to make money in this volatile environment.

More Gains Ahead?

Currently, REGL has a positive weighted alpha of 14.90. A positive weighted alpha hints at more gains.

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